Union Minister Ashwini Vaishnaw announced the approval on September 2, 2024, highlighting the plant's impressive capacity to produce 6.3 million chips per day.

The approval for the semiconductor plant alleviated investor concerns regarding pending government approvals, boosting confidence in the company's future.

Construction of the plant is set to begin soon on a 46-acre site in Sanand, where land has already been acquired.

Shares of Kaynes Technology India surged by 5.20% to Rs 4,899 following the Union Cabinet's approval for a semiconductor unit in Sanand, Gujarat.

The semiconductor unit, proposed by Kaynes Semicon, a wholly owned subsidiary of Kaynes Technology India, will require an investment of Rs 3,300 crore.

The initiative to develop a semiconductor and display manufacturing ecosystem in India was launched in December 2021 with a budget of Rs 76,000 crore.

The localization of the electronics supply chain in India is driven by high domestic demand and increased consumption, enhancing outsourcing opportunities.

This facility will have the capacity to assemble, test, mark, and pack 60 lakh chips daily, catering to sectors such as automotive, consumer electronics, and telecom.

Kaynes Technology reported a remarkable 106% year-on-year increase in profit for Q1 FY25, reaching Rs 50.8 crore, with revenue growing 70% to Rs 504 crore.

The company's shares were trading at Rs 4,822.75, up 4% from the previous close, with a market capitalization of Rs 30,998 crore.

India's electronics system design and manufacturing (ESDM) industry was valued at $29.41 billion in FY2023-24, with expectations to grow significantly by FY2026-27.

Union IT Minister Ashwini Vaishnaw emphasized the semiconductor sector's crucial role in India's industrial growth.